Schlumberger posts revenue bump, but lower profit in 4Q

Houston, January 20 - Neftegaz.RU. According to Schlumberger, the company’s 4rth-quarter revenue of $8.23 billion decreased 4% sequentially, but increased 1% year-on-year when the company’s revenues were $8.18 billion.

The company’s full-year worldwide revenue of $32.9 billion was flat year-on-year, with international revenue growth of 7%. Schlumberger’s income before taxes in 4Q 2019 dropped 30% to $452 million from $648 million in 4Q 2018.

The company’s net income in 4Q 2019 totaled $333 million, a 38% drop compared to the net income of $538 million in 4Q 2018.For the full year 2019, Schlumberger’s posted a loss of $10.1 billion, compared to a profit of $2.1 billion in 2018.

Schlumberger CEO, Olivier Le Peuch, commented: “From a macro perspective, we ended the year with 2020 oil demand growth sentiment turning positive as uncertainty reduced following the progress made toward a US-China trade deal. The fall in the North America production growth estimate of between 400,000 to 800,000 bpd should continue to support the thesis for international investment".

"In the near term, we expect the OPEC+ production cuts agreed upon in December 2019 to limit investment and activity, particularly in the Middle East and Russia, during the 1st half of 2020. As the year progresses, the effect of slowing North America production growth is likely to cause tightness in the market and further stimulate international operators to step up their investments in the second half of the year and beyond", Le Peuch added.